Reasons Behind Gen Z's Support for Palantir Technologies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy PLTR?
Source: Fool
- Mission Resonance: Palantir's focus on national security and solving significant problems through AI resonates with younger generations, making it particularly appealing as a disruptor to traditional defense contractors.
- CEO Charisma: CEO Alex Karp's raw and philosophical communication style attracts Gen Z, breaking the mold of traditional CEOs and fostering a relatable image that resonates with young investors.
- Community Aspect: Palantir has garnered a following on social media and investment forums, creating a community of supporters who emphasize early backing of a misunderstood company, enhancing Gen Z's sense of belonging.
- Stock Surge: Since the launch of ChatGPT in November 2022, Palantir's stock price has skyrocketed from $6 to around $170, demonstrating its ability to monetize AI in the enterprise software space, further solidifying its appeal among young investors.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 145.890
Low
50.00
Averages
192.88
High
255.00
Current: 145.890
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Receives Trump’s Praise, Future Growth Potential
- Government Business Growth: Palantir generated $4.5 billion in sales last year, with over 54% from government contracts, and a 53% growth rate in this sector indicates strong performance that could further drive overall growth.
- Presidential Endorsement Impact: Trump's high praise for Palantir, highlighting its 'great war fighting capabilities and equipment,' not only enhances the company's credibility in securing government contracts but may also attract more investor interest in its stock.
- Commercial vs. Government Growth: While the government business grew at 53%, the commercial sector outpaced it with a 60% growth rate, suggesting that Palantir's competitive edge in the commercial market is also strengthening, potentially leading to dual-driven growth.
- Stock Valuation Challenges: Despite Palantir's robust overall growth, its stock currently trades at a price-to-earnings ratio exceeding 200, prompting investors to carefully consider valuation, as a solid business does not guarantee good returns if the price is ignored.
See More
Palantir Stock Faces 80% Downside Risk Amid High Valuation
- Price Decline Risk: Palantir's stock is down 29% from its all-time high, and analysts predict an 80% further decline if its valuation normalizes to peer levels, posing significant risks for investors.
- Strong Revenue Growth: Over the past three years, Palantir's revenue has increased by 119%, with a 70% year-over-year growth last quarter, indicating its ability to rapidly secure new contracts in government and large enterprises; however, its stock price has outpaced revenue growth significantly.
- Valuation Pressure: Palantir's current price-to-sales (P/S) ratio stands at 85, far exceeding the average of 10 for large software companies, which may limit the potential for further stock price appreciation in the future.
- Shareholder Dilution Impact: The number of shares outstanding has increased by 28% over the past five years, and if this dilution trend continues, the stock price could drop by 80% even if the market cap reaches $100 billion in the coming years, increasing investment risks.
See More
Palantir Stock Down 29% Faces Significant Risks Ahead
- Stock Decline Trend: Palantir's stock has fallen 29% from its peak, with a current market cap of $353 billion, indicating market concerns about its future growth and potentially diminishing investor confidence.
- Valuation vs. Growth Mismatch: Despite Palantir's revenue growing 119% over the past three years and a 70% year-over-year increase last quarter, its price-to-sales ratio has surged to 85, far exceeding the peer average of 10, suggesting a significant risk of an 80% decline in stock price if valuations normalize.
- Profitability and Market Share: Palantir achieved a GAAP profit margin of 41% in Q4 2025, showcasing its high profitability in the software market; however, shareholder dilution could limit future stock price growth, increasing investment risks.
- Investor Confidence Shaken: With a 28% increase in shares outstanding over the past five years, this dilution may further suppress stock prices, leading analysts to advise caution for potential investors, especially as Palantir was not included in the list of top recommended stocks.
See More
Palantir Technologies Inc. and USDA Finalize $300 Million Blanket Purchase Agreement
Palantir Technologies in the News: Palantir Technologies has made headlines with its recent developments and agreements in the tech industry.
Major Financial Agreement: The company has signed a significant $300 million blanket purchase agreement, indicating a strong financial commitment and partnership.
Impact on Business Operations: This agreement is expected to enhance Palantir's operational capabilities and expand its market presence.
Future Prospects: The financial backing from this agreement may lead to further innovations and growth opportunities for Palantir Technologies.
See More
S&P 500 Hits New Highs Amidst High Valuations
- High Valuations in S&P 500: The S&P 500's cyclically adjusted P/E (CAPE) ratio has reached a 10-year high, indicating high valuations in the market, making it increasingly difficult to find bargain stocks despite the overall market rebound.
- Costco's Market Performance: Costco's P/E ratio stands at 52, reflecting its strong demand and reliability in the retail sector, with March sales increasing by 11.3% year-over-year, showcasing robust market demand despite a challenging comparison period.
- Palantir's Rapid Growth: Palantir's revenue surged 70% year-over-year in Q4 2025, driven by a remarkable 137% growth in U.S. commercial contracts, completing 180 deals worth over $1 million, highlighting its strong performance and appeal in the AI sector.
- Investment Opportunities: Although Costco and Palantir are currently highly valued, they remain on investors' buy lists should their stock prices drop significantly, particularly after earnings reports or during market fluctuations, potentially offering better entry points.
See More
Analysis of Market Performance for Costco and Palantir
- Costco Sales Growth: In March, Costco reported an 11.3% year-over-year sales increase, with comparable sales rising 9.4%, demonstrating the company's strong resilience and customer loyalty in the retail market, further solidifying its market leadership.
- Valuation Challenges: With a P/E ratio of 52, Costco's stock price remains high despite slowing growth, reflecting the market's strong recognition of its stability and reliability, which may limit short-term investment opportunities.
- Palantir Contract Value Milestone: Palantir achieved a record total contract value of $4.3 billion in Q4 2025, with a 70% year-over-year revenue increase, driven by a remarkable 137% growth in U.S. commercial contracts, highlighting strong demand in the AI sector.
- AI-Driven Growth Potential: Palantir's operating margin stands at 57% and free cash flow margin at 56%, indicating unique advantages in AI technology application, and despite a high P/E ratio of 231, it continues to attract investor interest.
See More
Palantir Receives Trump’s Praise, Future Growth Potential
- Government Business Growth: Palantir generated $4.5 billion in sales last year, with over 54% from government contracts, and a 53% growth rate in this sector indicates strong performance that could further drive overall growth.
- Presidential Endorsement Impact: Trump's high praise for Palantir, highlighting its 'great war fighting capabilities and equipment,' not only enhances the company's credibility in securing government contracts but may also attract more investor interest in its stock.
- Commercial vs. Government Growth: While the government business grew at 53%, the commercial sector outpaced it with a 60% growth rate, suggesting that Palantir's competitive edge in the commercial market is also strengthening, potentially leading to dual-driven growth.
- Stock Valuation Challenges: Despite Palantir's robust overall growth, its stock currently trades at a price-to-earnings ratio exceeding 200, prompting investors to carefully consider valuation, as a solid business does not guarantee good returns if the price is ignored.
See More
Palantir Stock Faces 80% Downside Risk Amid High Valuation
- Price Decline Risk: Palantir's stock is down 29% from its all-time high, and analysts predict an 80% further decline if its valuation normalizes to peer levels, posing significant risks for investors.
- Strong Revenue Growth: Over the past three years, Palantir's revenue has increased by 119%, with a 70% year-over-year growth last quarter, indicating its ability to rapidly secure new contracts in government and large enterprises; however, its stock price has outpaced revenue growth significantly.
- Valuation Pressure: Palantir's current price-to-sales (P/S) ratio stands at 85, far exceeding the average of 10 for large software companies, which may limit the potential for further stock price appreciation in the future.
- Shareholder Dilution Impact: The number of shares outstanding has increased by 28% over the past five years, and if this dilution trend continues, the stock price could drop by 80% even if the market cap reaches $100 billion in the coming years, increasing investment risks.
See More
Palantir Stock Down 29% Faces Significant Risks Ahead
- Stock Decline Trend: Palantir's stock has fallen 29% from its peak, with a current market cap of $353 billion, indicating market concerns about its future growth and potentially diminishing investor confidence.
- Valuation vs. Growth Mismatch: Despite Palantir's revenue growing 119% over the past three years and a 70% year-over-year increase last quarter, its price-to-sales ratio has surged to 85, far exceeding the peer average of 10, suggesting a significant risk of an 80% decline in stock price if valuations normalize.
- Profitability and Market Share: Palantir achieved a GAAP profit margin of 41% in Q4 2025, showcasing its high profitability in the software market; however, shareholder dilution could limit future stock price growth, increasing investment risks.
- Investor Confidence Shaken: With a 28% increase in shares outstanding over the past five years, this dilution may further suppress stock prices, leading analysts to advise caution for potential investors, especially as Palantir was not included in the list of top recommended stocks.
See More
Palantir Technologies Inc. and USDA Finalize $300 Million Blanket Purchase Agreement
Palantir Technologies in the News: Palantir Technologies has made headlines with its recent developments and agreements in the tech industry.
Major Financial Agreement: The company has signed a significant $300 million blanket purchase agreement, indicating a strong financial commitment and partnership.
Impact on Business Operations: This agreement is expected to enhance Palantir's operational capabilities and expand its market presence.
Future Prospects: The financial backing from this agreement may lead to further innovations and growth opportunities for Palantir Technologies.
See More
S&P 500 Hits New Highs Amidst High Valuations
- High Valuations in S&P 500: The S&P 500's cyclically adjusted P/E (CAPE) ratio has reached a 10-year high, indicating high valuations in the market, making it increasingly difficult to find bargain stocks despite the overall market rebound.
- Costco's Market Performance: Costco's P/E ratio stands at 52, reflecting its strong demand and reliability in the retail sector, with March sales increasing by 11.3% year-over-year, showcasing robust market demand despite a challenging comparison period.
- Palantir's Rapid Growth: Palantir's revenue surged 70% year-over-year in Q4 2025, driven by a remarkable 137% growth in U.S. commercial contracts, completing 180 deals worth over $1 million, highlighting its strong performance and appeal in the AI sector.
- Investment Opportunities: Although Costco and Palantir are currently highly valued, they remain on investors' buy lists should their stock prices drop significantly, particularly after earnings reports or during market fluctuations, potentially offering better entry points.
See More
Analysis of Market Performance for Costco and Palantir
- Costco Sales Growth: In March, Costco reported an 11.3% year-over-year sales increase, with comparable sales rising 9.4%, demonstrating the company's strong resilience and customer loyalty in the retail market, further solidifying its market leadership.
- Valuation Challenges: With a P/E ratio of 52, Costco's stock price remains high despite slowing growth, reflecting the market's strong recognition of its stability and reliability, which may limit short-term investment opportunities.
- Palantir Contract Value Milestone: Palantir achieved a record total contract value of $4.3 billion in Q4 2025, with a 70% year-over-year revenue increase, driven by a remarkable 137% growth in U.S. commercial contracts, highlighting strong demand in the AI sector.
- AI-Driven Growth Potential: Palantir's operating margin stands at 57% and free cash flow margin at 56%, indicating unique advantages in AI technology application, and despite a high P/E ratio of 231, it continues to attract investor interest.
See More
